A company that manufactures magnetic membrane switches is investigating two productionoptions that have the estimated cash flows shown ($1 million units) in Table below. Which oneshould be selected on the basis of Present Worth (PW) analysis at 10% per year?In-houseContractFirst cost, $Annual cost, $Annual income, $ per yearSalvage value, $Life, years-30per year-5-2143.110%TABLE 15Discrete Cash Flow: Compound Interest Factors10%Single PaymentsUniform Series PaymentsArithmetic GradientsCompoundPresentWorthSinkingFundCompoundCapitalRecoveryA/PPresentGradientGradientAmountAmountWorthPresent WorthUniform SeriesF/PP/FA/FF/AP/AP/GA/G11.10000.90911.000001.00001.100000.90911.21000.82640.476192.10000.576191.73550.82640.476231.33100.75130.302113.31000.402112.48692.32910.936641.46410.68300.215474.64100.315473.16994.37811.38120.62090.56450.51321.61050.163806.10510.263803.79086.86181.810161.77160.129617.71560.229614.35539.68422.223671.94870.105419.48720.205414.868412.76312.621682.14360.46650.0874411.43590.187445.334916.02873.004592.35790.42410.0736413.57950.173645.759019.42153.3724102.59370.38550.0627515.93740.162756.144622.89133.7255

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A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 million units) in Table below. Which or should be selected on the basis of Present Worth (PW) analysis at 10% per year? In-house Contract First cost, $ Annual cost, $ per year Annual income, $ per year Salvage value, $ Life, years -30 -5 -2 14 3.1

A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 million units) in Table below. Which or should be selected on the basis of Present Worth (PW) analysis at 10% per year? In-house Contract First cost, $ Annual cost, $ per year Annual income, $ per year Salvage value, $ Life, years -30 -5 -2 14 3.1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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